Gov’t reiterates economic benefits of close ties with mainland

In response to an unfavorable economic rating, the local government reiterated the potential benefits of positioning the city in step with national policies.

“Moody’s Investors Service” (Moody’s) announced that it will maintain the long-term issuer credit rating assigned to the Macau Special Administrative Region at “Aa3.” According to Moody’s rating definition, the “Aa3” rating is the fourth highest level, meaning the risk of default is very low.

On behalf of the government, the Monetary Authority of Macao (AMCM) emphasized in a statement that “the Macau SAR Government does not agree with Moody’s future outlook for the SAR, which was moved from ‘stable’ to a ‘negative’ level.”

“It should be noted, in fact, that the close economic ties between Macau and Mainland China will provide strong support for its long-term development. At a time when the global economy is facing complex challenges and multiple uncertainties, mainland China’s economy still grew 5.2% in real terms in the first three quarters of 2023, which will have a positive impact on Macau’s external demand,” the AMCM continued saying, adding that “the International Monetary Fund estimates that China’s contribution to world economic growth this year will be more than 30%.”

To further emphasize its stance, the AMCM noted that the local government has adopted “prudent budgetary management,” in addition to having ample fiscal and foreign exchange reserves.

It also cited the city’s recovery rate of 77.7% in the first three quarters of the year, as well as the clarification of the plan for economic diversification, to further oppose the rating entity’s assessment.